I've been looking into wholesaling because from what I have learned so far it doesn't require credit or money upfront (both of which I currently lag on). I'm a real estate enthusiast, in the process of getting my real estate license, and am making real estate a lifelong learning process.
Does anyone here do wholesaling? and if so what have you experienced as far as what's required from you to wholesale a deal?
Thank you for your time,
I'm just getting started myself but I can tell you...if you don't have ANY money to put into it then plan on spending a TON of time. Marketing is the biggest key to successful wholesaling. I'm in the middle of a $5000 direct-mail marketing campaign to find sellers and a friend/associate of mine spent about $150 on bandit signs (which are working very well for him, by the way). We've both spent money having business cards printed (an absolute MUST. You can get 500 of them at Vistaprint for about $50). If you've got no other money you can make your own bandit signs with a super-fat black marker and pieces of cardboard. I've even heard of guys using pizza boxes! If you're the adventurous type you can go to a prospective neighborhood and knock on doors (take your cards with you!) You can also go to a REIA meeting in your area and see if you can partner up with an established investor as an intern in a mentoring type of relationship. See what kinds of work you can do for them while they teach you the business and maybe partner with you on your first couple of deals. So, yeah...wholesaling is the least-expensive point of entry into the business but what you don't spend in money you spend in time...marketing, networking and negotiating deals. Hope that helps! And good luck!
Thanks for the info! I understand that no money means I'll still have to put up some cash for little things. I guess what's on my mind is if I find a house and a willing buyer, do I need to put earnest money of any sort down to secure the property under contract? After I secure under contract I would then flip it to an investor.
Also, in your opinion is finding sellers willing to go to your terms more difficult than finding buyers?
Also, is it advisable to stick to properties under that I could purchase for under 50k?
It doesn't require credit but it does require money. Getting your license is good because you can acquire hud homes for $500-1000 free n clear. Then flip them. Do a couple and then start seller marketing. Rinse repeat.
Be prepared to work your *** off. If you hustle you'll eventually be successful.
I could be home for that cheap as an agent??? 500-1000??? Are these houses that a typical wholesaler would look at?
@Matthew Santillanes - Earnest money is completely between you and the seller...unless it's off the MLS, then you'll likely have to put some down. As far as negotiating with buyers & sellers it's almost always more difficult to negotiate a deal with a seller, but this is where you make your money. You always make your money on the buy-side. If you negotiate a good purchase price with the seller you can always find buyers. In regards to the price range, that's entirely up to what you're comfortable with. I think it was a pod-cast with Ben Leybovich where he said something along the lines of this: working deals with $50,000 houses is no different than working deals with $500,000 houses. There's just more zeros. So go put up some signs, knock on some doors and get a deal done! :)
Thank you everyone for all the information,
One more question, if I find a property where the seller is willing to sell it to me for say 10k, but the property has a lien on it for 20k, what could I do here? Can I simply still buy it for the 10k?
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